Paragraph 9 of AASB 12/IFRS 12 Disclosure of Interests in Other

question 31

Multiple Choice

Paragraph 9 of AASB 12/IFRS 12 Disclosure of Interests in Other Entities provides the following examples of situations where it is necessary to disclose significant judgements and assumptions in relation to subsidiaries

• A) where an entity does not control another entity but it holds more than half of the voting rights in the other entity.
• B) where an entity controls another entity but it holds less than half of the voting rights of the other entity.
• C) where an entity is an agent or a principal.
• D) all of the options are correct.

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Definitions:

Phi Phenomenon

The optical illusion of perceiving continuous motion between separate objects viewed rapidly in succession.

Implicit Memory Effect

A phenomenon where previous experiences aid the performance of a task without conscious awareness of these previous experiences.

Sequestering Effect

The process of removing or isolating a chemical or substance from the environment, often used in carbon capture to reduce atmospheric CO2.

Serial Position Effect

A cognitive phenomenon whereby items at the beginning and end of a list are remembered more easily and accurately than those in the middle.